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Ontario OTC for nursing home residents
April 16, 2009
RC4064 sets out what can be claimed as attendant or nursing care as a medical expense and if someone is working or going to school and has income to offset, they should consider claiming these costs as a 'disability support'. Check out T929 for a list of eligible expenses that can be either a medical expense tax credit or a direct deduction from income as a disability support. Note that disability supports do not have the same restrictions on claiming the Disability Tax Credit as those for attendant care or nursing home care.
Rent isn’t on the list of eligible attendant care or nursing home expenses. The nursing home should provide a receipt that identifies what is nursing care and what is rent and other non specific care costs, be for attendant care or nursing care.
In Ontario there is a provincial rent credit that is claimable?
It appears so...
Quote with permission:
Just to add to Eileen’s comments, since I have the benefit of living in Ontario while she doesn’t, there are two kinds of nursing home arrangements. Those which are subsidized by the Ontario government generally are not paying property taxes, or at least not the full amount, so the residents cannot claim an Ontario Tax Credit for the rental portion. Private nursing homes, on the other hand, pay full taxes and the residents can claim the rent on the ON479 schedule. Those private nursing homes which I deal with have been most helpful in providing a statement showing the breakdown between attendant care, non-eligible expenses such as food, and the rental portion.
In the year of death, the deceased taxpayer would not be able to claim the rent at the nursing home since they must have been living at December 31st to qualify. The remaining spouse can still claim his/her OTC for their own rent/property tax as the case may be at the other location.
John F Parsons CGA
38 Second Street
Sturgeon Falls ON P2B 3A8
Fax: (705) 753-4424
email: jparsons@onlink.net
Eileen Reppenhagen CGA does not research or endorse any product or service appearing in ads on this site. Before making any major financial decision(s) you should consult a qualified professional.
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